University Partnerships Programme has been named preferred bidder for the project which will include revamping existing accommodation and new build.
UPP will apply for planning permission to overhaul buildings at Lafrowda Flats, Rowe and St German’s and to construct new blocks.
The scheme is part of the university’s £450 million investment programme which covers a £48 million redevelopment at its Streatham campus and £18 million for new facilities for biosciences.
Director of Finance at the University Jeremy Lindley said: “The University is a tremendous asset for the city of Exeter and is worth more than £300 million a year to the local economy. The fact that we are still able to invest during troubled economic times will also help to protect local jobs.
“However, we also recognise that we have a big impact on the availability of housing in Exeter. Many students live in rented houses and this puts them in direct competition with local families. We want to free up rented accommodation for local families by providing students with an alternative on campus.”